The Variable Contribution Rate (VCR) application has been updated for State fiscal year 2016 (April 1, 2015 – March 31, 2016). This application provides non-State employers with the contribution rates for their Tier 6 employees. (The OSC Bureau of State Payroll Services automatically processes contribution rate changes for State employees.) This year, there is a new column for Tier 6 members whose rates will be based on earnings from two years ago. For fiscal year 2016, this “two-year look back” applies to members who joined during fiscal year 2013. The contribution rates for members who joined less than three years ago will still be based on the annual salary you provided to us on their membership applications. The legislation that created Tier 6 specifies these requirements for determining contribution rates. Please review the rates for your Tier 6 employees so the correct contributions are withheld for them.
The overtime limit for ERS Tier 6 members is based on the State fiscal year and is $15,608 for the fiscal year ending March 31, 2016. PFRS Tier 6 members have a cap of 15 percent of their regular salary. Please email our Member & Employer Services Bureau if you have any questions.
We send E-News and other important communications to designated contacts at your location. Is Retirement System information reaching the right people at your location? Email our Employer Services bureau any time you need to update your employer contact information.
The legislation that created Tier 6 established variable contribution rates for members based on their annualized wage. This video will help you understand how rates are determined and your important role in the process.